Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 February 2024
New Orleans Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA –CHRIS ROBERTSON, JR., age 25, a resident of New Orleans, pleaded guilty on February 15, 2024 before Chief U.S. District Judge Nanette Jolivette Brown to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, the Federal Bureau of Investigation (FBI) executed a search warrant at ROBERTSON’s residence in November of 2023. FBI agents found a box of 9-millimeter ammunition hidden beneath ROBERTSON’s mattress and a Glock Model 19, 9-millimeter handgun, hidden beneath a rug outside his bedroom. ROBERTSON has previous convictions for possessing a firearm with an obliterated serial number and attempted illegal carrying of weapons, while in possession of a controlled substance.
ROBERTSON, JR. faces up to 15 years in prison, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
Missouri Man Who Fled to Asia During Child Pornography Investigation Sentenced to 7 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man who fled to Asia after his arrest during a child pornography investigation to seven years in prison.
Dominic J. Pavia, now 42, pleaded guilty in November to one count of possession of child pornography. He admitted as part of his plea that on Dec. 10, 2010, an investigation by the Saint Louis County Police Department's Special Investigations Unit identified a computer being used to store child sexual abuse material. During an April 26, 2011, court-approved search, detectives seized computer equipment and Pavia, a law school student, was arrested. A scan revealed child pornography on the computer.
Pavia, who was living in University City at the time, left the country, knowing that criminal charges were a possibility, according to his plea agreement.
On March 4, 2014, detectives performed a full forensic analysis of the computer, finding 4,641 images and 1,719 videos containing child pornography. Pavia was indicted on Nov. 19, 2014.
After leaving the U.S., Pavia traveled to China, Thailand, Cambodia and the Philippines. He was unable to renew his visa in China in the summer of 2022 and his passport was set to expire in September 2023, according to court records. He returned to the United States in January 2023.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Dianna Collins prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Man Sentenced to 20 Years in prison for Recording Child Sexual AbuseRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a man who recorded his sexual abuse of a 13-year-old girl and recorded other children in the shower to 20 years in prison.
Matthew A. Prewett, 43, of Kennett, in Dunklin County, engaged in sexual contact with a 13-year-old girl beginning in April of 2022, and recorded his crimes on video. He also placed hidden cameras in his home, including in the bathroom, and recorded children between ages 12 and 17 while they were nude and showering.
The investigation began after the victim’s mother found sexually suggestive text messages from Prewett on her daughter’s phone.
Prewett pleaded guilty in November to a felony charge of sexual exploitation of a minor.
The case was investigated by the Kennett Police Department and the FBI. Assistant U.S. Attorney Julie Hunter is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Man Admits Selling Fentanyl to Drug Overdose VictimRead the Press Release
CAPE GIRARDEAU – A man from Jackson, Missouri on Wednesday admitted selling fentanyl to someone who later suffered a fatal overdose.
Dylan C. McMikle, 22, of Jackson, Missouri, pleaded guilty to one felony count of distribution of fentanyl. He admitted selling fentanyl to a 25-year-old Sikeston man early on the morning of Dec. 16, 2022. The victim snorted several lines of powdered fentanyl that McMikle provided and McMikle sold the victim an additional capsule containing fentanyl as he was leaving at approximately 6 a.m., McMikle’s plea agreement says The victim, who had been struggling with a serious addiction, died of a drug overdose that evening.
After the victim’s death, investigators found messages between the victim and McMikle about obtaining fentanyl. McMikle consented to a search of his home and officers found a small baggie of fentanyl powder and several fentanyl pills.
McMikle is scheduled to be sentenced May 21. The distribution of fentanyl charge carries a penalty of up to 20 years in prison.
The case was investigated by the Drug Enforcement Administration, the Southeast Missouri Drug Task Force and the Sikeston Department of Public Safety. Assistant U.S. Attorney Jack Koester is prosecuting the case.
Middlesex County Man Sentenced to 33 Months in Prison for Role in COVID-19 Fraud Schemes Totaling over $2.1 MillionRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 33 months in prison for his role in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Arlen G. Encarnacion, 38, of Perth Amboy, New Jersey, previously pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to a two-count information charging him with conspiracy to commit wire fraud and money laundering.
On Aug. 8, 2023, Jacquelyn Pena, 38, and Kent Encarnacion, 30, both of Perth Amboy, also separately pleaded guilty before Judge Castner to informations charging each of them with conspiracy to commit wire fraud and money laundering and were each sentenced to probation.
U.S. Attorney Philip R. Sellinger“This defendant fraudulently obtained funds earmarked for struggling Americans who needed financial relief during the COVID 19 pandemic. Today’s sentence demonstrates that those who used the pandemic to illegally enrich themselves will be held accountable. My office will continue to bring to justice individuals who have engaged in COVID-related fraud.”
“Brazen schemes have callously defrauded COVID-19 relief programs and caused undue financial harm to both hardworking Americans and businesses alike,” Christopher A. Nielsen, Inspector in Charge, U.S. Postal Inspection Service, Philadelphia Division, said. “Today’s sentencing illustrates that Postal Inspectors will continue its efforts to identify and hold accountable, those individuals who steal pandemic funds to fulfill their own greed.”
“IRS Criminal Investigation and our law enforcement partners are committed to investigating and prosecuting those who engage in acts of COVID-related fraud,” said Tammy Tomlins, Special Agent in Charge of Newark Field Office. “Today, Mr. Encarnacion was held accountable for fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). His conscious decision to participate in this illicit scheme has cost him his freedom.”
According to the documents filed in these cases and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. The CARES Act also authorized the Small Business Administration to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.
Arlen Encarnacion submitted 11 fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of purported businesses. Kent Encarnacion helped submit one of the fraudulent PPP applications, and Pena helped submit three of the other fraudulent PPP applications. Each application contained false representations, including bogus federal tax return documentation and fabricated information about the number of employees and wages paid. Based on these alleged misrepresentations, lenders, Federal Home Loan Bank members, and the Small Business Administration collectively provided the purported businesses with approximately $2.1 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Arlen Encarnacion received the bulk of the fraudulent proceeds, and together with Kent Encarnacion and Pena, they misappropriated all of the funds.
In addition to the prison term, Judge Castner sentenced Encarnacion to three years of supervised release and ordered restitution of $2.18 million.
U.S. Attorney Philip Sellinger credited postal inspectors of U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Nielsen, Philadelphia Division; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tomlins; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Social Security Administration – Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau New York Regional Office, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; with the investigation leading to today’s sentencing. He also thanked the Middlesex County Prosecutor’s Office and the Perth Amboy Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Meth Distributor Sentenced to over 7 Years in PrisonRead the Press Release
TUCSON, Ariz. – Esteban Terrazas, 56, of Tucson, was sentenced last week by United States District Judge Jennifer G. Zipps to 87 months in prison. Terrazas pleaded guilty to Possession with Intent to Distribute Methamphetamine on October 27, 2023.
On August 10, 2021, law enforcement officers stopped Terrazas for a traffic violation and found approximately one pound of methamphetamine and a loaded handgun in his possession. Terrazas admitted that he intended to sell the methamphetamine and that he was prohibited from possessing a gun. Terrazas has multiple prior felony convictions, the most recent being for manslaughter, that prohibit him from possessing firearms.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Homeland Security Investigations, the Drug Enforcement Administration, and the Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 21-2360-TUC-JGZ
RELEASE NUMBER: 2024-019_Terrazas# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Mason City Woman Sentenced to Federal Prison for Conspiring to Distribute MethRead the Press Release
A Mason City woman who allowed her daughter and another individual to store methamphetamine in her home was sentenced February 21, 2024, to more nearly 4 years in federal prison.
Julie Ann Sankey, age 62, from Mason City, Iowa received the prison term after an August 29, 2023, guilty plea to conspiracy to distribute methamphetamine. Sankey was in possession of a half-ounce of ice methamphetamine that belonged to the co-defendants and was intended for sale. Sankey allowed her co-defendants to store up pounds of methamphetamine for resale on 15 through 20 different occasions between 2020 and 2021.
Sankey was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sankey was sentenced to 46 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Sankey is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Mason City Police Department, Clear Lake Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3006.
Follow us on Twitter @USAO_NDIA.
Manchester Man Sentenced to Federal Prison for 6 Years for Possessing with Intent to Distribute Fentanyl and MethamphetamineRead the Press Release
CONCORD – A Manchester man was sentenced yesterday in federal court for possession of fentanyl and methamphetamine with the intent to distribute the drugs, U.S. Attorney Jane E. Young announces.
Jeffrey Hayes, 44, was sentenced by U.S. District Court Judge Joseph Laplante to 72 months in prison and 3 years of supervised release.
“The devastation caused by fentanyl and methamphetamine touches every community in New Hampshire,” U.S. Attorney Jane E. Young said. “Those who traffic these poisons like the defendant will be sentenced to prison for significant periods of time.”
"Our efforts to combat drug distribution are vital to safeguarding our community, and this outcome underscores the severity of such criminal activities and their detrimental impact on society,” said Manchester Police Chief Allen Aldenberg.
In 2021, the Manchester Police Department investigated Hayes for drug distribution, and eventually searched his residence. During the search, they found distribution-level quantities of methamphetamine and fentanyl.
The Manchester Police Department led the investigation. Assistant U.S. Attorney Heather Cherniske prosecuted the case.
###
Kaplan, La. Man Sentenced to Three Years Probation for Wire Fraud and Money Laundering ConspiracyRead the Press Release
NEW ORLEANS – GRANT C. MENARD, age 37 and a resident of Kaplan, La., was sentenced today by U.S. District Judge Jane Triche-Milazzo to three years of probation after previously pleading guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, announced U.S. Attorney Duane A. Evans.
As according to court documents, MENARD conspired with RYAN MULLEN, DUANE DUFRENE, DILLON ARCENEAUX, LANCE VALLO, and ZEB SARTIN to use a number of shell Louisiana companies with no assets, to defraud a merchant cash advance company based in Georgia. MULLEN and DUFRENE helped establish ARCENEAUX, VALLO, MENARD, and SARTIN as the owners of existing companies. MULLEN and DUFRENE then created fake vendor accounts for the companies, and MULLEN, with the aid of another person, created falsified bank records for the companies. MULLEN then used an alias, claiming to be a broker for the companies he helped create.
Through the aid of another broker, MULLEN supplied the victim merchant cash advance company with the fake vendor accounts and false bank records in order to obtain funding. The victim merchant cash advance company then approved the advances and began to electronically wire ARCENEAUX, VALLO, MENARD, and SARTIN millions of dollars in advances. ARCENEAUX, VALLO, MENARD, and SARTIN laundered a portion of the funds by paying MULLEN and DUFRENE percentages of the funds. ARCENEAUX, VALLO, MENARD, and SARTIN then closed their non-existent companies before fully repaying the merchant cash advance company, resulting in overall losses to the victim of approximately $6.4 million. MENARD, himself, was responsible for approximately $649,990 in losses to the victim.
In addition to the sentence, MENARD was sentenced to pay $649,990 in victim restitution, 40 hours of community service and a mandatory special assessment fee of $200.
U.S. Attorney Evans commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera of the Financial Crimes Unit and Andre Lagarde of the Public Integrity Unit.
Kansas man indicted on drug trafficking chargesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with drug trafficking and firearms crimes.
According to court documents, Horace R. Wright, 40, of Pittsburg is charged with one count of possession of methamphetamine with intent to distribute, one count of possession of fentanyl with intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.
The Kansas Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Lanny Welch is prosecuting the case.
OTHER INDICTMENTS
Raul Delgado-Sanchez, 32, of Wichita was indicted on one with count of distribution of methamphetamine, one count of possession of methamphetamine with the intent to distribute, and one count of unlawful possession of a firearm. The Drug Enforcement Administration (DEA) is investigating the case. Assistant U.S. Attorney Lanny Welch is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Kanawha County Man Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Sean Patrick Boyd Jr., 26, of Dunbar, was sentenced today to five years of federal probation for receipt of stolen money. Boyd was also ordered to pay $23,817.79 in restitution, and owes $17,227.79 of that amount after turning over $6,590 in seized assets. Boyd admitted to a scheme to defraud the Paycheck Protection Program (PPP) of $20,832 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 18, 2021, Boyd applied for a PPP loan on behalf of his purported business, “Sean Boyd.” Boyd falsely stated in his application that “Sean Boyd” was in operation on February 15, 2020, which was a requirement to qualify for a PPP loan. Boyd admitted that “Sean Boyd” was fictitious and was not a registered business entity in West Virginia at the time he applied for the loan. Businesses applying for PPP loans were also required to provide documentation showing their prior gross income from either 2019 or 2020. Boyd admitted that he submitted a false IRS Form 1040, Schedule C, stating that “Sean Boyd” had earned $99,996 in gross income during 2019.
Boyd submitted the loan application electronically from West Virginia and it was uploaded to servers in Nebraska for processing. Boyd’s loan application was approved and $20,832 was electronically transferred to his personal bank account in West Virginia. Boyd admitted that before he received the fraudulent loan, his bank account balance was $12.47. On May 24, 2021, Boyd withdrew $10,000 of the fraudulent loan proceeds from his bank’s branch in Nitro.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the PPP.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-123.
###
Justice Department Sues to Shut Down Florida Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit to permanently bar Julius T. Price and his tax return preparation business, Price’s Accounting Firm Inc., from preparing federal income tax returns for others.
The complaint, filed in the U.S. District Court for the Middle District of Florida, alleges that Price prepared thousands of federal income tax returns from 2018 through 2023 that understate his customers’ tax liabilities and overstate the refunds to which they were entitled through a variety of schemes. The complaint describes how Price knowingly made up businesses on returns he prepared to generate bogus losses, included fraudulent claims for the Earned Income Tax Credit (EITC), claimed fictitious deductions and credits for tuition and fees and fabricated itemized deductions for medical expenses, mortgage interest and gifts to charity. According to the complaint, Price’s pattern of fraudulently understating his customers’ tax liabilities and overstating their refunds has resulted in the loss of significant federal tax revenue, estimated to exceed $1.5 million.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Price Complaint.pdfJustice Department Announces Nuclear Materials Trafficking Charges Against Japanese Yakuza LeaderRead the Press Release
A superseding indictment was unsealed in Manhattan today charging a Japanese national with conspiring with a network of associates to traffic nuclear materials from Burma to other countries.
According to court documents, Takeshi Ebisawa, 60, and co-defendant Somphop Singhasiri, 61, were previously charged in April 2022 with international narcotics trafficking and firearms offenses, and both have been ordered detained.
“The defendant stands accused of conspiring to sell weapons grade nuclear material and lethal narcotics from Burma, and to purchase military weaponry on behalf of an armed insurgent group,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “It is chilling to imagine the consequences had these efforts succeeded and the Justice Department will hold accountable those who traffic in these materials and threaten U.S. national security and international stability.”
“As alleged, the defendant brazenly trafficked material containing uranium and weapons-grade plutonium from Burma to other countries,” said U.S. Attorney Damian Williams for the Southern District of New York. “He did so while believing that the material was going to be used in the development of a nuclear weapons program, and while also negotiating for the purchase of deadly weapons. It is impossible to overstate the seriousness of this conduct. I want to thank the career prosecutors of my office and our law enforcement partners for ensuring that the defendant will now face justice in an American court.”
“As alleged, the defendants in this case trafficked in drugs, weapons, and nuclear material – going so far as to offer uranium and weapons-grade plutonium fully expecting that Iran would use it for nuclear weapons,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “This is an extraordinary example of the depravity of drug traffickers who operate with total disregard for human life. I commend the men and women of DEA and this prosecution team for their tireless work to protect us from such evil.”
According to the allegations contained in the indictment, beginning in early 2020, Ebisawa informed UC-1 and a DEA confidential source (CS-1) that Ebisawa had access to a large quantity of nuclear materials that he wanted to sell. Later that year, Ebisawa sent UC-1 a series of photographs depicting rocky substances with Geiger counters measuring radiation, as well as pages of what Ebisawa represented to be lab analyses indicating the presence of thorium and uranium in the depicted substances. In response to Ebisawa’s repeated inquiries, UC-1 agreed, as part of the DEA’s investigation, to help Ebisawa broker the sale of his nuclear materials to UC-1’s associate, who was posing as an Iranian general (the General), for use in a nuclear weapons program. Ebisawa then offered to supply the General with “plutonium” that would be even “better” and more “powerful” than uranium for this purpose. An example of a photograph sent by Ebisawa is shown below:
Source: Superseding Indictment, filed publicly in U.S. District Court for the Southern District of New York, case S3:22-cr-2566. Photo sent by the defendant depicting rock substances with Geiger counters measuring radiation.During their discussions regarding Ebisawa’s access to nuclear materials, Ebisawa also engaged with UC-1 concerning Ebisawa’s desire to purchase military-grade weapons. To that end, in May 2021, Ebisawa sent UC-1 a list of weapons, including surface-to-air missiles, that Ebisawa wished to purchase from UC-1 on behalf of the leader of an ethnic insurgent group in Burma (CC-1). Together with two other co-conspirators (CC-2 and CC-3), Ebisawa proposed to UC-1 that CC-1 sell uranium to the General, through Ebisawa, to fund CC-1’s weapons purchase. On a Feb.4, 2022 videoconference, CC-2 told UC-1 that CC-1 had available more than 2,000 kilograms of Thorium-232 and more than 100 kilograms of uranium in the compound U3O8 — referring to a compound of uranium commonly found in the uranium concentrate powder known as “yellowcake” — and that CC-1 could produce as much as five tons of nuclear materials in Burma. CC-2 also advised that CC-1 had provided samples of the uranium and thorium, which CC-2 was prepared to show to UC-1’s purported buyers. CC-2 noted that the samples should be packed “to contain . . . the radiation.”
About one week later, Ebisawa, CC-2 and CC-3 participated in a series of meetings with UC-1 and CS-1 in Southeast Asia to discuss their ongoing weapons, narcotics, and nuclear materials transactions. During one of these meetings, CC-2 asked UC-1 to meet in CC-2’s hotel room. Inside the room, CC-2 showed UC-1 two plastic containers, each holding a powdery yellow substance (the Nuclear Samples), which CC-2 described as “yellowcake.” CC-2 advised that one container held a sample of uranium in the compound U3O8, and the other container held Thorium-232. UC-1 photographed and video-recorded the Nuclear Samples, an example image of which is shown below:
Source: Superseding Indictment, filed publicly in U.S. District Court for the Southern District of New York, case S3:22-cr-2566. Photo of the Nuclear SamplesWith the assistance of Thai authorities, the Nuclear Samples were seized and subsequently transferred to the custody of U.S. law enforcement authorities. A U.S. nuclear forensic laboratory examined the Nuclear Samples and determined that both samples contain detectable quantities of uranium, thorium and plutonium. In particular, the laboratory determined that the isotope composition of the plutonium found in the Nuclear Samples is weapons-grade, meaning that the plutonium, if produced in sufficient quantities, would be suitable for use in a nuclear weapon.
A table containing the charges and maximum penalties for Ebisawa and Singhasiri is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Count
Defendant(s)
Maximum Penalty
Count One: conspiracy to commit international trafficking of nuclear materials
Ebisawa
20 years in prison
Count Two: international trafficking of nuclear materials
Ebisawa
10 years in prison
Count Three: narcotics importation conspiracy
Ebisawa and Singhasiri
Life in prison; mandatory minimum penalty of 10 years in prison
Count Four: conspiracy to possess firearms, including machineguns and destructive devices
Singhasiri
Life in prison
Count Five: conspiracy to acquire, transfer, and possess surface-to-air missiles.
Ebisawa
Life in prison; mandatory minimum sentence of 25 years in prison
Count Six: narcotics importation conspiracy
Ebisawa
Life in prison; mandatory minimum sentence of 10 years in prison
Count Seven: conspiracy to possess firearms, including machine guns and destructive devices
Ebisawa
Life in prison
Count Eight: money laundering
Ebisawa
20 years in prison
The DEA Special Operations Division Bilateral Investigations Unit is investigating the case, with valuable assistance provided by the DEA Tokyo Country Office, DEA Bangkok Country Office, DEA Chiang Mai Resident Office, DEA Jakarta Country Office, DEA Copenhagen Country Office, DEA New York Field Office, DEA New Delhi Country Office, the Justice Department’s Office of International Affairs and the National Security Division’s Counterterrorism Section, and law enforcement partners in Indonesia, Japan and the Kingdom of Thailand.
Trial Attorney Dmitry Slavin of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Alexander Li, Kaylan E. Lasky and Kevin T. Sullivan for the Southern District of New York are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ebisawa superseding indictment.Jackson Center Man Sentenced to Prison for Drug Trafficking and Firearms ConvictionsRead the Press Release
PITTSBURGH, Pa. – A resident of Jackson Center, Pennsylvania, has been sentenced to 33 months in federal prison for conspiring to distribute fentanyl, heroin, cocaine, and crack, and for receiving and transporting a firearm while under a felony indictment, United States Attorney Eric G. Olshan announced today.
Michael Love, 46, was sentenced by United States District Judge Cathy Bissoon, who also ordered Love to serve three years of supervised release following his prison sentence.
According to information presented to the Court, Love was responsible for the distribution of 20 grams of fentanyl, 10 grams of heroin, 20 grams of powder cocaine, and 20 grams of crack cocaine in Mercer County, Pennsylvania, in 2020 and 2021. The Court was also informed that, after Love was indicted for this conduct in 2021 and released on bond, he unlawfully received firearms in March 2022 while his felony indictment was pending.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Office of Attorney General, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, Hermitage Police Department, and Farrell Police Department for the investigation leading to the successful prosecution of Love.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Immokalee Felon Pleads Guilty to Drug and Firearm OffensesRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Javier Joel Perez (45, Immokalee) today pleaded guilty to possessing a controlled substance with the intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm and ammunition as a convicted felon. Perez faces a maximum penalty of life in federal prison. A sentencing date has not yet been set. Perez has also agreed to forfeit the firearm and ammunition used to facilitate the offenses.
According to court documents, deputies from the Collier County Sheriff’s Office executed a search warrant on Perez’s residence and located marijuana, cocaine, and methamphetamine packaged for distribution. They also located a loaded firearm. Perez told deputies that the items located in his residence belonged to him. Perez is a nine-time convicted felon, as such he prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Collier County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Mark Morgan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Neenah Man Charged with Distributing Sexually Explicit Images of a Minor
Adam J. Westbrook, 34, Neenah, Wisconsin, is charged with distributing a visual depiction of a minor engaged in sexually explicit conduct. The indictment charges that Westbrook used Snapchat to distribute two videos of Minor A engaged in sexually explicit conduct on or about January 27, 2024. Westbrook will make his initial appearance on the charge on February 22, 2024, at 11:15 am.
If convicted, Westbrook faces a mandatory minimum penalty of 5 years and a maximum penalty of 20 years in prison.
The charge against Westbrook is the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and the Neenah, Lake Delton, and Kenosha Police Departments. Assistant United States Attorneys Elizabeth Altman and Anita Marie Boor are handling the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dane County Men Charged with Possessing Fentanyl and Methamphetamine Intended for Distribution
Corvalis M. Stewart, 36, Madison, Wisconsin, and Larry D. Williamson Jr., 35, Waunakee, Wisconsin, are charged with possessing 400 grams or more of fentanyl intended for distribution. The indictment alleges that the two men possessed the fentanyl on February 8, 2024. Both men were arrested on February 8, 2024, and remain in custody. Stewart and Williamson are also charged with possessing, with intent to distribute, 500 grams or more of a mixture containing fentanyl and methamphetamine on February 8, 2024.
If convicted, Stewart and Williamson, Jr. face a mandatory minimum penalty of ten years and a maximum penalty of life in prison on each charge.
The charges against Stewart and Williamson Jr. are the result of an investigation by the U.S. Department of Homeland Security’s Homeland Security Investigations, Dane County Narcotics Task Force, and the Middleton Police Department, with the assistance of the Air and Marine Operations Center (AMOC) in Riverside, CA. Assistant U.S. Attorney Corey Stephan is handling the case.
Eau Claire Men Charged with Distributing Fentanyl and Methamphetamine
Hector A. Jimenez-Sosa, 41, and Mario R. Aviles, 26, both of Eau Claire, Wisconsin, are charged with distributing fentanyl and methamphetamine on September 19, 2023, and with distributing fentanyl on October 3, 2023. The indictment alleges that with respect to Jimenez-Sosa, the amount attributable to him on September 19, 2023, was 50 grams or more of methamphetamine. Jimenez-Sosa is also charged with distributing 50 grams or more of methamphetamine on October 31, 2023.
If convicted, Jimenez-Sosa faces a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison on the two charges involving distribution of 50 grams or more of methamphetamine. If convicted on the other charges, both Jimenez-Sosa and Aviles face maximum penalties of 20 years in prison.
The charges against Jimenez-Sosa and Aviles were the result of an investigation by the West Central Drug Task Force, Eau Claire Police Department, Eau Claire County Sheriff’s Office, Drug Enforcement Administration, and the United States Postal Inspection Service. Assistant U.S. Attorney Steven P. Anderson is handling the case.
Former Tax Return Preparer Pleads Guilty to Preparing False Tax Returns for ClientsRead the Press Release
FARGO – A former tax return preparer who provided services to clients in North Dakota pleaded guilty today to five counts of preparing false tax returns for clients.
According to court documents and statements made in court, Joseph Korha, currently of Minneapolis, Minnesota, worked as a tax return preparer for a business located in Phoenix, Arizona. In 2019, Korha prepared and submitted more than 100 fraudulent returns for clients, many of whom resided in the Fargo area. Korha claimed false tax credits and fictitious business profits and losses on these returns, which inflated his clients’ tax refunds. In total, Korha caused a tax loss to the IRS of approximately $294,000.
Korha is scheduled to be sentenced on Monday, June 3, 2024, at 10 a.m. He faces a maximum penalty of three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mac Schneider for the District of North Dakota made the announcement.
“This guilty plea is a victory for honest taxpayers,” Schneider said. “Nobody likes taxes, but when a preparer willfully commits fraud, that’s a crime that hurts the millions of Americans who work with trusted professionals to follow the law. I want to thank our partners at IRS Criminal Investigation for ensuring justice was done in this case.”
“A guilty plea is a good first step in achieving justice for taxpayers,” said Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation’s St. Louis Field Office. “CI is happy to work alongside our partners in the U.S. Attorney’s Office to track down fraudulent tax preparers and hold them accountable for taking advantage of unsuspecting taxpayers.”
IRS Criminal Investigation is investigating the case.
Trial Attorney Dominick Giovanniello of the Tax Division and Assistant U.S. Attorney Megan A. Healy of the U.S. Attorney’s Office for the District of North Dakota are prosecuting the case.
###
Former San Antonio Lawyer Sentenced to 50 Years for Wire Fraud, Money LaunderingRead the Press Release
SAN ANTONIO – Former San Antonio Attorney Christopher John Pettit, 56, was sentenced in a federal court in San Antonio to 50 years in prison for fraud and money laundering.
For more than two decades, Pettit made numerous misrepresentations that persuaded his clients to deposit money with his firm, Chris Pettit and Associates, PC, which funds the clients believed would be used for services such as living trusts, irrevocable trusts, estate planning services, investments, and real-estate transactions, but which Pettit instead misused for his own enrichment and as part of a Ponzi-type scheme.
In one scheme, Pettit opened trustee accounts with client funds and simply moved the money to his own accounts, rather than using the funds for the benefit of the trust. Other fraudulent schemes included falsely promising to invest client money in high percentage bonds and instead wiring the funds to his personal account. He also falsely represented himself as a Qualified Intermediary for a 1031 real-estate exchange, which he used to convince clients to wire millions of dollars from asset sales into accounts he controlled and then misused for his own enrichment. Pettit would use his victimized clients’ funds to pay other client debts as well as to support an extravagant lifestyle. The schemes resulted in an estimated loss to the victims of between $20 million and $65 million. Pettit pleaded guilty Oct. 5, 2023, to three counts of wire fraud and three counts of money laundering.
“This case began with one victim filing a complaint before the investigation unraveled a massive and deceptive criminal scheme,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thanks to the Fair Oaks Ranch Police Department for first recognizing the depth of the fraud in this case, and to the Bexar County District Attorney’s Office for referring the case to the FBI. The punishment handed down by Judge Garcia reflects the seriousness of the offense and is the product of steadfast collaboration by our partners at the local, state and federal levels.”
“Christopher Pettit used his position of trust as an attorney to defraud his clients of millions of dollars, in some cases their life savings, all for his own selfish benefit. Today’s sentence reflects the resolve of the FBI to bring to justice anyone who would take advantage of their position to line their own pockets,” said Special Agent in Charge Aaron G. Tapp for the FBI San Antonio Division. “We want to thank our partners at Fair Oaks Ranch Police Department, Texas Department of Public Safety, and Texas State Securities Board for their continued assistance in keeping our communities safe.”
The FBI investigated the case in conjunction with the Texas State Securities Board, Texas Department of Public Safety and Fair Oaks Ranch Police Department.
Assistant U.S. Attorney Kelly Stephenson prosecuted the case.
###
Former Philadelphia Resident Sentenced to Seven Years in Prison for Drug and Firearm ViolationsRead the Press Release
PITTSBURGH, Pa. – A former resident of Philadelphia, Pennsylvania, has been sentenced in federal court to a total of 85 months in prison followed by five years of supervised release in connection with his federal drug and firearm convictions, United States Attorney Eric G. Olshan announced today.
United States Chief District Judge Mark R. Hornak imposed the sentence on Khaleaf Lindsay, 27.
According to information presented to the Court, Lindsay facilitated drug transactions in Butler and returned to Philadelphia with the profits. On August 2, 2021, law enforcement executed a search warrant upon a Butler apartment used by Lindsay in his drug operation. The search led to the seizure of a loaded handgun, bulk U.S. currency, and packaged controlled substances that included fluorofentanyl, fentanyl, and crack.
Prior to imposing sentence, Judge Hornak stressed that Lindsay had returned to drug trafficking shortly after completing a sentence for his last felony drug offense. Federal law also prohibits possession of a firearm or ammunition by a convicted felon.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Butler County Anti-Drug Task Force and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Lindsay.
Former Nurse Pleads Guilty to Adulteration of FentanylRead the Press Release
BOSTON – A former nurse pleaded guilty today in federal court in Boston to adulteration of fentanyl at a local hospital.
Caroline Sheehan, 39, of Lowell, Mass. pleaded guilty to one count of adulteration of a prescription drug with intent to defraud and mislead. U.S. District Court Judge Angel Kelley scheduled sentencing for June 12, 2024. Sheehan was charged by Information in November 2023.
While working at a Massachusetts hospital, Sheehan removed a bag of intravenous fentanyl solution from an automated dispensing machine. Sheehan used a syringe to remove fentanyl from the IV bag, injected saline into the bag to replace the fentanyl she had removed and returned the bag to its drawer in the machine. A hospital employee removed the IV bag, which laboratory testing confirmed contained less than the declared concentration of fentanyl, from the machine before any of the adulterated fentanyl solution was administered to a patient. Sheehan later admitted that she had withdrawn fentanyl from the IV bag and replaced it with saline to avoid getting caught.
The charge of adulteration of a prescription drug provides a sentence of no greater than three years in prison, one year of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting United States Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Robert Coviello, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General; and Robert H. Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of the Health Care Fraud Unit is prosecuting the case.
Former North Dakota Tax Preparer Pleads Guilty to Preparing False Returns for ClientsRead the Press Release
A former North Dakota man pleaded guilty today to five counts of preparing false tax returns for clients.
According to court documents and statements made in court, Joseph Korha, currently of Minneapolis, worked as a tax return preparer for a business located in Phoenix, Arizona. In 2019, Korha prepared and submitted more than 100 fraudulent returns for clients, many of whom resided in the Fargo area. Korha claimed false tax credits and fictitious business profits and losses on these returns, which inflated his clients’ tax refunds. In total, Korha caused a tax loss to the IRS of approximately $294,000.
Korha is scheduled to be sentenced on June 3. He faces a maximum penalty of three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mac Schneider for the District of North Dakota made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Dominick Giovanniello of the Justice Department’s Tax Division and Assistant U.S. Attorney Megan Healy for the District of North Dakota are prosecuting the case.
Former Capital One Analyst Sentenced for Insider TradingRead the Press Release
ALEXANDRIA, Va. – A foreign national formerly of Henrico was sentenced today to two years in prison after engaging in a $3.1 million insider trading scheme.
According to court documents, Nan Huang, 45, conspired with his then-coworker to commit insider trading. From 2008 to 2015, Huang worked as a senior data analyst for a subsidiary of Capital One Financial Corporation. As a senior data analyst, Huang had access to a Capital One database that collected transaction data from Capital One credit card and debit card customers. In violation of his fiduciary duties to Capital One, Huang searched this database thousands of times and compiled on his work computer material, non-public information about publicly traded companies.
Because this information was highly correlated with the not-yet-public actual revenue of these companies, Huang was able to predict whether these companies would meet their revenue expectations. Huang then executed hundreds of trades using this non-public information and reaped extraordinary profits. Huang personally made over $1.4 million in profits, while the overall conspiracy made more than $3.1 million.
Capital One fired Huang in 2015 after it discovered his activity. Days later, Huang fled the country to China, where he remained until his arrest at San Francisco International Airport on April 23, 2023.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorneys Christopher Hood and Zachary Ray prosecuted the case. Former Assistant U.S. Attorney Matthew Burke provided significant assistance on the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-319.
Former Brighton high school teacher going to prison for possession of child pornographyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Louis Carusone, 45, of Webster, NY, who was convicted of possession of child pornography involving prepubescent minors, was sentenced to serve 42 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that on October 10, 2022, Carusone, who was a high school physics teacher in the Brighton Central School District at the time, shared a video and images containing child pornography in an online peer-to-peer file-sharing network, which were downloaded by an undercover law enforcement officer. The officer then downloaded more files containing child pornography that were shared from Carusone’s IP address over the next few days.
On October 21, 2022, investigators executed a search warrant at Carusone’s Webster residence and seized multiple devices including a cell phone and computer. A forensic analysis recovered more than 2,000 images and videos of child pornography, some of which depicted children as young as five-years-old, and children being subjected to violence and sexual abuse. The forensic analysis further revealed that Carusone surreptitiously recorded and photographed children in public, to include minor female students in his Brighton classroom, and a water park, where he recorded children in bathing suits.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Rochester Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
# # # #
Former Booneville Basketball Coach Sentenced for Child ExploitationRead the Press Release
Greenville, MS – A former Booneville High School assistant basketball coach was sentenced to serve ten years in prison on Wednesday following his conviction for online enticement of a minor.
According to court documents, Kenny Paul Geno, 28 years old, used a minor to make and produce child sexual abuse materials, and enticed minor students to self-produce “nudes” to send to him. The investigation commenced in October of 2022, when the FBI received a complaint alleging that Geno, an assistant basketball coach at Booneville High school, was sending minors at BHS inappropriate Snapchat communications. Several current and former female students subsequently reported that Geno solicited images of sexually explicit conduct over Snapchat. At least one former student advised that she engaged in sexual contact with Geno that he recorded on his cell phone. During the ongoing investigation, several videos of child sexual abuse material involving minor victims were recovered on Geno’s cell phone hidden within an encrypted application used to store the media.
On Wednesday, Chief U.S. District Judge Debra M. Brown ordered Geno to serve 120 months in prison followed by five years of supervised release. Geno will also be required to register as a sex offender.
“Today’s sentence is an important reminder that no one is above the law and that we will always seek to hold accountable individuals who abuse the trust of the public and children who are entrusted to their care,” remarked U.S. Attorney Clay Joyner. “We appreciate the work of law enforcement in this case to see that this defendant spends the next ten years where he belongs, in prison.”
“Mr. Kenny Paul Geno’s actions violated the innocence and trust of many young children,” said FBI Acting Special Agent In Charge Maher Dimachkie. “The FBI is committed to combating crimes against children and will continue to engage with law enforcement partners and community leaders to protect children. The FBI will hold individuals like Mr. Geno accountable for their actions.”
The FBI investigated the case.
Assistant U.S. Attorney Parker King prosecuted the case.
Florida Man Indicted for Health Care Fraud, Wire Fraud, Illegal Kickbacks in $97 Million SchemeRead the Press Release
NEWARK, N.J. – A Florida man was charged in an indictment unsealed today for his role in durable medical equipment (DME) kickback scheme that caused $97 million in losses to Medicare, Attorney for the United States Vikas Khanna announced today.
Raheel Naviwala, 35, of Coral Springs, Florida, is charged in a 10-count indictment with one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, two counts of wire fraud, one count of conspiracy to violate the federal Anti-Kickback Statute, and three counts of illegal kickbacks.
According to documents filed in the case and statements made in court:
Naviwala and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for durable medical equipment – orthotic braces – for Medicare beneficiaries, without regard to medical necessity. Naviwala and his conspirators obtained the DME orders through the use of marketing call centers and telemedicine companies. Naviwala and his conspirators provided these DME orders in exchange for bribes from certain companies of $125 to $450 per brace. Naviwala and his conspirators caused losses to Medicare in excess of $97 million and received kickbacks in excess of $46 million.
Conspiracy to commit health care fraud and wire fraud is punishable by a maximum potential penalty of 20 years in prison. Each count of health care fraud is punishable by a maximum potential penalty of 10 years in prison. Each count of wire fraud is punishable by a maximum potential penalty of 20 years in prison. Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. Each count of illegal kickbacks is punishable by a maximum potential penalty of 10 years in prison. Each count is also punishable by a fine.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Matthew Specht and Ray Mateo of the Opioid Abuse Prevention & Enforcement Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
naviwala.indictment.pdfFirst Defendant Ever Charged with Violating Anti-Doping Act Sentenced to PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ERIC LIRA was sentenced to three months in prison by U.S. District Judge Lorna G. Schofield for his role in providing banned performance-enhancing drugs (“PEDs”) to Olympic athletes in advance of the 2020 Summer Olympic Games held in Tokyo in 2021. LIRA is the first defendant to be charged and convicted, following his guilty plea in May 2023, under the Rodchenkov Anti-Doping Act, which criminalizes the operation of doping schemes for the purpose of influencing international sports competitions, such as the Olympic Games.
U.S. Attorney Damian Williams said: “Today’s sentence sends a clear message: violating the Rodchenkov Anti-Doping Act comes with serious consequences up to and including incarceration. That message is especially important this year with the upcoming Summer Olympic Games in Paris. It is imperative that those tempted to supply performance-enhancing drugs to Olympians understand the severity of their actions. Doping not only distorts fair play but also erodes the essence of sportsmanship, tarnishing the sanctity of international sporting events and betraying the trust of athletes and spectators alike. It has no place in any community, and this Office is committed to rooting out efforts to compromise the integrity of sports and other affected events.”
According to the allegations contained in the Complaint, the Indictment, other filings in this case, and statements during court proceedings:
The charges in this case arise from an investigation of a scheme to provide Olympic athletes with PEDs, including drugs widely banned throughout competitive sports, such as human growth hormone and the “blood building” drug erythropoietin, in advance of and for the purpose of corrupting the 2020 Olympic Games, which convened in Tokyo in the summer of 2021. LIRA, who claims to be a “kinesiologist and naturopathic” doctor operating principally in and around El Paso, Texas, obtained unapproved versions of these and other prescription drugs from sources in Central and South America before bringing those drugs into the U.S. and distributing them to, among others, the two athletes referred to in the Indictment. Throughout the scheme, LIRA and an athlete competing for Nigeria communicated via encrypted electronic communications regarding the sale, shipment, and use of LIRA’s illegal drugs and specifically discussed the “testability” of those drugs by anti-doping authorities. LIRA separately communicated with an athlete competing for Switzerland via encrypted electronic communications on the use of human growth hormone and erythropoietin. Both athletes tested positive for prohibited substances, and in both cases, LIRA directly and indirectly advised that the athletes should blame the positive drug test on contaminated meat, knowing full well that the drug tests had accurately detected the presence of banned, performance-enhancing drugs.
* * *
In addition to the prison term, LIRA, 44, of El Paso, Texas, was sentenced to one year of supervised release and ordered to forfeit $16,410.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) and the FBI’s Integrity in Sports and Gaming Initiative. Mr. Williams also thanked the U.S. Anti-Doping Agency for their support of this investigation.
This case is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Sarah Mortazavi, Josiah Pertz, and Benjamin A. Gianforti are in charge of the prosecution.
Firearms and Drug Charges Filed Against District Man Who Allegedly Committed Crimes While on Pre-Trial Release for Shooting a 14-Year-OldRead the Press Release
WASHINGTON – A superseding indictment charges Darnell Lamont Savoy, 24, of Washington D.C., with charges of unlawful possession of a firearm, possession with intent to distribute fentanyl, carrying a firearm in furtherance of a drug trafficking offense, possession of a large-capacity feeding device, and second-degree cruelty to children.
The charges contained in a federal indictment, docketed on February 15, 2024, are in addition to a case charged in Superior Court in connection with the 2018 shooting of a 14-year-old child, and a subsequent 2022 stabbing that Savoy allegedly committed while under indictment – and on pretrial release – for the shooting, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
An arraignment for Savoy is scheduled for April 26, 2024, before U.S. District Court Judge Timothy J. Kelly.
In 2021, Savoy was released from custody, over the government’s written and oral objections, and put on home confinement while awaiting trial on assault with intent to kill while armed and related offenses stemming from the 2018 shooting. According to court documents, on October 11, 2022, Savoy allegedly stabbed a person during an argument and fled the scene. Investigators tracked Savoy to the 3900 block of Southern Avenue, SE. On the morning of October 21, 2022, MPD officers and FBI agents executed a search warrant at an apartment unit on the block, where Savoy was staying with a woman and a 3-year-old child. During the search, law enforcement found a plastic bag containing 4.55 grams of an off-white powder, a digital scale with white powder residue, a red cut straw with white powder residue, and a two-pack of naloxone. The powder and the residues tested positive for fentanyl.
In a blue camo jacket, investigators discovered 27 zip baggies with an off-white powder weighing a total of 7.3 grams, 29 blue bills stamped M30, 16 red zip baggies containing an off-white powder weighing nearly 5 grams, and $473 in U.S. currency. The powders tested positive for fentanyl. The jacket also contained Savoy’s driver’s license, Visa credit card, and Costco membership card. In a hall closet, on top of a dryer, officers discovered a loaded, unregistered, semi-automatic Glock 30, with 23 rounds in a 30 round capacity magazine. DNA testing linked Savoy to the firearm. DNA from the woman living in the apartment could not be linked to the firearm. The fentanyl recovered during the search warrant was located in a common area of the apartment that the three-year-old had access to, which could have led to the overdose of the child.
The charges of assault with intent to kill while armed with a firearm and other counts stem from the 2018 shooting of a 14-year-old. The victim had been sitting in a car with his father, when Savoy drove up with two other men who began shooting, believing the vehicle contained individuals involved in the murder of a member of Savoy’s crew. Trial in that case is scheduled to begin in April of 2024.
The case is being investigated by the FBI Washington Field Office and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Alicia Long and Special Assistant U.S. Attorney Adam Stempel. Valuable assistance was provided by Assistant U.S. Attorney William G. Hart and former Special Assistant U.S. Attorney Sarah J. Rasalam.
The charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Sentenced to Prison for Violent Uber and Lyft Carjacking Conspiracy, Assaulting a Federal OfficerRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 87 months in prison for his role in a series of violent carjackings and armed robberies targeting Uber and Lyft drivers and for assaulting a federal officer, announced United States Attorney Andrew M. Luger.
According to court documents, between September and October 2021, William Charles Saffold, 21, and his co-defendants Shevirio Kavirion Childs-Young, 20, Javeyon Demario Tate, 23, and Eric Harrell Knight, 20, engaged in a series of violent carjackings and armed robberies, targeting Uber and Lyft drivers. As part of the scheme, the defendants conspired with each other to lure drivers to preplanned locations under the guise of picking up or dropping off passengers. When the drivers arrived, the defendants carjacked the drivers at gunpoint. To intimidate and force compliance, they brandished firearms, beat, and pistol-whipped the drivers. They also demanded keys, wallets, and cell phones and forced the drivers at gunpoint to unlock their phones and provide passcodes. The defendants then used the passcodes to further victimize the drivers by accessing and stealing money from the drivers’ Cash App accounts or other applications.
According to court documents, on May 11, 2022, while attempting to execute an arrest warrant, an FBI agent approached Saffold, who immediately drew a pistol and pointed it at the agent before fleeing on foot.
On October 21, 2022, Saffold pleaded guilty to one count of conspiring to use, carry, and brandish firearms during and in relation to crimes of violence and one count of assaulting a federal officer. Saffold was sentenced yesterday by Judge Katherine M. Menendez to 87 months in prison followed by three years of supervised release.
U.S. Attorney Andrew M. Luger thanked the Minneapolis Police Department and the FBI for their skilled investigative work on the case, and Uber and Lyft for their assistance throughout the investigation.
This case was prosecuted by U.S. Attorney Andrew M. Luger and Assistant U.S. Attorney Thomas Calhoun-Lopez.
Federal Jury Finds Career Offender Guilty of Illegally Possessing a FirearmRead the Press Release
Memphis, TN – A federal jury returned a guilty verdict recently in the case of a career offender accused of firearm and drug offenses. Charlie Gibson, 25, of Memphis is facing more than twenty years in federal prison for marijuana possession with intent to distribute, being a convicted felon in possession of a firearm, and having a firearm during commission of a crime. United States Attorney Kevin G. Ritz announced the verdict today.
According to court documents, in December 2021, security guards at an area apartment complex stopped Gibson for loitering. Upon detaining Gibson and searching his belongings, the guards found a Glock .40 caliber pistol, approximately 250 grams of marijuana, and three digital scales. The guards called Memphis police, who came and arrested Gibson.
In a second incident, Shelby County deputies responded to an assault call in July 2022 at Durhamshire Cove and were told that the suspect was driving a gray Nissan. Deputies found the vehicle and saw a man, later identified as Gibson, quickly get into the vehicle. A deputy stood in front of the car and ordered Gibson to stop, but the suspect refused and drove forward, hitting the deputy, who rolled onto the hood of the vehicle. The deputy drew his service weapon and again ordered the suspect to stop, but Gibson instead revved the engine. The deputy fired several rounds through the windshield, striking Gibson, who crashed shortly thereafter. Deputies at the scene rendered lifesaving aid to Gibson. Law enforcement later found a Glock .40 caliber pistol on the driver’s side floorboard of Gibson’s vehicle.
Charges from both incidents were combined into a superseding indictment in November 2023.
After a two-day trial, on February 13, federal jurors found Charlie Gibson guilty of two counts of being a convicted felon in possession of a firearm, one count of marijuana possession with intent to distribute, and one count of possession of a firearm during commission of a dangerous felony.
As a result of his felony convictions, Gibson will face sentencing as an career criminal. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Jermal Blanchard and Greg Wagner, who prosecuted this case, as well as law enforcement partners who investigated the case.
Federal Indictment Charges Registered Sex Offender with Production of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Christopher Porter, 30, a registered sex offender, with production of child pornography and committing a qualifying felony offense involving a minor while being required to register as a sex offender, announced Dena J. King U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief J. Bryan Gilliard of the Monroe Police Department join U.S. Attorney King in making today’s announcement.
According to allegations in the four-count indictment, between May 28, 2023, and September 6, 2023, Porter produced child pornography by using, inducing, enticing, and coercing a minor to engage in sexually explicit conduct for the purpose of creating a visual depiction of that conduct. The indictment also alleges that Porter committed a felony criminal offense involving a minor while he was required by law to register as a sex offender.
Porter is currently in state custody in Missouri and will be transported to the Western District of North Carolina to appear in court on the federal charges.
Each of the three counts of production of child pornography carries a minimum prison sentence of not less than 15 years and a maximum of 30 years. However, if the defendant has a prior conviction under the laws of any State relating to aggravated sexual abuse, sexual abuse, or abusive sexual contact involving a minor, the minimum prison sentence is 30 years and the maximum is 50 years. The charge of commission of a qualifying felony while being required to register as a sex offender carries a maximum penalty of 10 years in prison consecutive to any other prison term imposed.
The charges contained in the indictment are allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King commended the FBI in Charlotte and the Monroe Police Department for their investigation of the case and thanked the Kirkwood Missouri Police Department, the FBI in St. Louis, and the FBI in Knoxville for their invaluable assistance.
Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Federal Grand Jury Indicts Louisville Teacher for Distributing and Possessing Child PornographyRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on February 21, 2024, charging a former Louisville school teacher with distribution and possession of child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to the indictment, Jordan A. Fautz, 39, was charged with distribution of child pornography, distribution of obscene visual representation of child sexual abuse, and possession of child pornography between March 31, 2022, and February 2, 2024.
The defendant is scheduled to appear for an arraignment on February 26, 2024, before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. The defendant was previously arrested on a criminal complaint and was ordered detained on February 6, 2024. He remains in federal custody pending trial. If convicted, he faces a minimum sentence of 5 years and a maximum sentence of 120 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the FBI.
Assistant U.S. Attorney A. Spencer McKiness is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Ex-Bureau of Land Management employee admits stealing, forging and cashing government checksRead the Press Release
MISSOULA—A former Bureau of Land Management employee today admitted to stealing agency checks and forging the signature of another employee to obtain cash for personal expenses, U.S. Attorney Jesse Laslovich said.
Adrian Anthony Aragon, 52, of Butte, pleaded guilty to theft of government property and aggravated identity theft. Aragon faces a maximum of 10 years in prison, a $250 000 fine and three years of supervised release on the theft crime and a mandatory minimum of two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft crime.
U.S. Magistrate Judge Kathleen L. DeSoto presided. U.S. District Judge Dana L. Christensen will sentence Aragon on June 26. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Aragon was detained pending further proceedings.
The government alleged in court documents that Aragon worked for the BLM in 2019 and 2020. In early 2022, a BLM employee, identified as Jane Doe, reported four checks totaling $10,700 were written on a government bank account in her name without her knowledge or authorization. Bank records showed that the checks were written to “cash” against a Citibank account and presented for deposit into Wells Fargo accounts solely in Aragon’s name. Aragon used the stolen funds for personal expenses, including cash withdrawals, utility and cell phone bills, restaurants, grocery stores and Amazon purchases. Jane Doe told law enforcement that Aragon had access to her checks during his employment and that Aragon made schedule changes resulting in him being the first or last person in the office.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case. The Department of Interior Office of Inspector General conducted the investigation.
XXX
Elizabeth City Man with Gun Linked to Two Shootings Sentenced to Eight YearsRead the Press Release
RALEIGH, N.C. – Manuel Gonzalez, of Elizabeth City, was sentenced today to 96 months in prison for possession of a firearm by a felon. Gonzalez, 29, pled guilty to the charge on November 2, 2023.
“Last month, we launched a partnership with local law enforcement for a Violent Crime Action Plan in the Albemarle Region. This case is a prime example of the senseless drug-related gun violence that partnership targets,” said U.S. Attorney Michael Easley. “This defendant fired a rain of bullets in a drug dispute, including into a home where a woman was sleeping. His eight-year sentence should stand as a warning. Violent felons driving gun violence should put down their guns or face federal prison.”
“The Elizabeth City Police Department is grateful to all who had a hand in the conviction and sentencing of Mr. Gonzalez. His sentencing is a testament to the power of partnerships as a force multiplier in keeping our communities safe. We are committed to arresting those individuals who chose to use firearms to commit violent acts and will always work with our partners to ensure violent felons receive federal time,” said Elizabeth City Police Chief J. Phillip Webster.
According to court documents and other information presented in court, on February 15, 2021, officers with the Elizabeth City Police Department, responded to a call regarding a shooting at a residence in Elizabeth City. Two victims identified the defendant as the shooter and described how Gonzalez had begun shooting a handgun toward them after a drug dispute. The victims had to run and hide inside the house and behind a truck to escape his gunfire. Officers found multiple bullet holes in the side of the truck, as well as one that went through a wall of the home into a bedroom where a woman was sleeping. One victim may have been grazed but no one was seriously injured.
On the afternoon of February 19, 2021, law enforcement received information that Gonzalez was staying at the Days Inn on S. Hughes Boulevard in Elizabeth City. Officers responded to the hotel to serve an arrest warrant related to the shooting. They knocked several times, and Gonzalez eventually opened the door and surrendered without incident. During a search of the room pursuant to a search warrant, officers found a fully loaded Glock 22 .40 caliber handgun under the bed mattress. In the top drawer of a dresser, they found a box of .40 caliber ammunition and a loaded extended magazine wrapped in a red bandana. They also found a small amount of cocaine. A debit card and other paperwork in the room were in Gonzalez’s name.
Ballistics testing of the Glock handgun confirmed that it was used to fire shells discovered at the February 15, 2021, shooting. This testing also connected the firearm to an earlier incident on January 30, 2021, in which a victim was shot multiple times.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Elizabeth City Police Department, Pasquotank County Sherriff’s Office, and Federal Bureau of Investigation (FBI) investigated the case and Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:22-cr-0014-D.
###
Eastern Kentucky Doctor and Nurse Sentenced for Conspiracy to Illicitly Prescribe Controlled SubstancesRead the Press Release
LONDON, Ky. – A Kentucky physician, Crystal Compton, D.O., 43, and a nurse, Kayla Lambert, 36, were sentenced on Wednesday, by U.S. District Judge Robert Wier, to 100 months and 60 months in prison, respectively, for conspiracy to illegally prescribe controlled substances and related offenses.
During the conspiracy, Compton was a licensed physician who practiced in several medical clinics in the Pikeville area. Lambert was a nurse who also worked at these medical clinics. According to evidence presented at trial, Compton and Lambert conspired to unlawfully distribute controlled substances using prescriptions that were not written for a legitimate medical purpose, within the usual course of professional practice. Compton and Lambert issued prescriptions for significant quantities and dosages of opioid painkillers, including oxycodone, methadone, and hydrocodone, sometimes in combination with other controlled substances, such as alprazolam and clonazepam. For example, one individual received prescriptions for 720 methadone 10mg and 180 alprazolam 2mg pills in a single month. Another received prescriptions for 480 methadone 10mg and 300 oxycodone 10mg pills in a single month. Compton also provided multiple prescriptions to Lambert, for 180 oxycodone 30mg pills. The evidence also established that Lambert sometimes issued illegitimate controlled substance prescriptions by signing Compton’s name to prescriptions.
Under federal law, Compton and Lambert must serve 85 percent of their prison sentence. Upon his release from prison, they will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence.
The investigation was conducted by the DEA. Assistant U.S. Attorney Andrew Smith is prosecuting the case on behalf of the United States.
— END —
Drug User and Felon who Illegally Possessed 3 Firearms to Serve Time in Federal PrisonRead the Press Release
A man who possessed a firearm as a felon and a drug user was sentenced today to 37 months in federal prison.
Sean Hamilton Pruden, age 44, from Harrisburg, Pennsylvania, received the prison term after a September 8, 2023 guilty plea to one count of possessing a firearm as a prohibited person.
Evidence at the sentencing hearing showed that Pruden, who was visiting Cedar Rapids, Iowa, for work, was a felon, a drug user, and on probation in another state, at the time he possessed a loaded firearm. Pruden also had a firearm in his hotel room and a stolen firearm in his vehicle.
Pruden was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Pruden was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Pruden is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 23-CR-42.
Follow us on Twitter @USAO_NDIA.
District Teen Pleads Guilty to CarjackingRead the Press Release
WASHINGTON – Miliki Lee, 19, of Washington, D.C., pleaded guilty in Superior Court in the District of Columbia to carjacking and possession of a firearm during a crime of violence, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
According to court documents, the victim was driving in the 1000 block of Buchanan St NE at approximately 9:30 p.m. on October 27, 2023, when Lee and two other juveniles, who were driving another vehicle, drove in front of her, blocking her path. Lee and his co-conspirators got out and surrounded the victim’s vehicle, and eventually forced her out of her car at gunpoint. Within minutes MPD officers responded to the victim’s call and used the MPD helicopter to track the stolen vehicle into Prince George’s County Maryland. Prince George’s County police followed Lee back into the District, where Lee crashed the vehicle. Prince George’s County police and MPD officers apprehended Lee after he ran from the car. Police also recovered a Glock handgun that was loaded with 29 rounds of ammunition.
Superior Court Judge Michael Ryan scheduled a sentencing hearing for May 17, 2024. Lee faces a mandatory minimum term of seven years in prison for carjacking, and a mandatory minimum term of five years in prison for possessing and using the firearm during the carjacking.
This case was investigated by the Metropolitan Police Department, with valuable assistance from the Prince George’s County Police Department. It is being prosecuted by Assistant U.S. Attorney Kathryn Bartz.
Derry Man Pleads Guilty to Attempting to Fraudulently Obtain Approximately $2.5 Million in COVID-19 Pandemic Relief FundsRead the Press Release
CONCORD – A Derry man pleaded guilty yesterday in federal court to attempting to fraudulently obtain $2.5 million in COVID-19 pandemic relief funds, U.S. Attorney Jane E. Young announces.
David Dodge, 41, pleaded guilty to bank fraud. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for May 29, 2024. Dodge’s wife and co-conspirator, Tammy Dodge, has a change of plea hearing scheduled for March 4, 2024.
Dodge claimed to own or control multiple businesses in New Hampshire and Massachusetts, including Teacher Tammy (a/k/a Teacher Tammy’s), Optimized Operations, and Business Done Right. In reality, these companies had no operations and served no business purpose.
In total, Dodge submitted 30 fraudulent applications for Paycheck Protection Program (PPP) loans from private lenders, Economic Injury Disaster Loans (EIDLs) from the Small Business Administration, and pandemic relief grants from the New Hampshire Governor’s Office for Emergency Relief and Recovery (GOFERR) and the Massachusetts Growth Capital Corporation (MGCC). To commit the fraud, David Dodge also used the Social Security Number of a minor child to apply for and obtain an Employer Identification Number from the IRS for a fictional company called Consulting Services.
Dodge used fake supporting documents in the applications. For example, on May 4, 2020, David Dodge applied for a $39,355 PPP loan for Optimized Operations. He provided a “Payroll Report” purporting to show that Optimized Operations had monthly payroll of approximately $46,000 through December 2020, seven months into the future. Other fake documents included a doctored Limited Liability Company certificate showing that Optimized Operations was incorporated in Massachusetts in June 2016, when it did not exist on paper until May 2020. David Dodge also provided fraudulent tax documents showing that Optimized Operations had five employees paid $45,000 each quarter.
Overall, because lenders detected most of the fraudulent applications, Dodge was able to obtain $219,323.34 out of the approximately $2.5 million he sought. He misused some of the fraudulently obtained funds to purchase jewelry.
The charging statute provides a sentence of no greater than 30 years in prison, 5 years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Treasury Inspector General for Tax Administration led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Davenport, Iowa Man Sentenced to 48 Months in Prison for Firearms ConvictionRead the Press Release
ROCK ISLAND, Ill. – A Davenport, Iowa, man, Charles H. Perdue II, 25, of the 1300 block of West Third Street, Davenport, was sentenced on February 14, 2024, to 48 months of imprisonment, to be followed by 3 years supervised release, for Felon in Possession of a Firearm.
At the sentencing hearing before Chief United States District Judge Sara L. Darrow, the government established that on May 10, 2023, Perdue, who had previously been convicted of felony offenses in Cook County, Illinois and Scott County, Iowa, was stopped in the vicinity of 12th Street, Rock Island, by City of Rock Island Police. Officers were aware that Perdue had an outstanding warrant from Scott County, Iowa, for a probation violation for an additional weapons offense. A search of Perdue’s backpack yielded a Glock 23 Gen5 firearm with an attached laser/flashlight. The firearm was loaded with an extended magazine containing 27 rounds of live ammunition. Perdue has remained in custody of the U.S. Marshals Service since his arrest in July 2023.
Perdue pleaded guilty on October 11, 2023, to Felon in Possession of a Firearm. The statutory penalty for this offense is up to 15 years imprisonment, up to 3 years of supervised release, and a fine of not more than $250,000.
The case against Perdue is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rock Island Police Department investigated the case. Assistant United States Attorney Elizabeth Aguilar represented the government in the prosecution.
Convicted Drug Trafficking Murderer Sentenced to 50 YearsRead the Press Release
WASHINGTON – Jann Jousten Aponte-Rivera, 27, of San Juan, Puerto Rico, was sentenced today to 50 years in prison for the drug-related murder of Shantay Myisha Butler, 42, of Frederick, MD, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Criminal and Cyber Division, and Acting Inspector in Charge Ajay Lall, of the U.S. Postal Inspection Service (USPIS). The sentence was handed down by U.S. District Court Chief Judge James E. Boasberg.
Aponte-Rivera was convicted after a jury trial on November 8, 2023 of all three counts charged, including: conspiracy to distribute five kilograms or more of cocaine; continuing criminal enterprise – causing the intentional death of Shantay Butler; and causing the death of Shantay Butler through the use of a firearm during and in relation to a drug-trafficking offense. Aponte-Rivera was part of a large-scale drug trafficking organization based in San Juan that was sending kilogram quantities of cocaine to the mainland United States, including the Washington D.C. region, via the U.S. Postal Service. Law enforcement identified more than 50 parcels of cocaine shipped by the organization from Puerto Rico to the area with a wholesale street value of at least $2 million. Once the drugs arrived in the metropolitan area, a local drug trafficking organization distributed the cocaine to mainland dealers.
The drug trafficking organization’s members, including Aponte-Rivera, traveled from San Juan to the Washington, D.C. area to collect drug proceeds, and then surreptitiously traveled on commercial airliners with the proceeds. Aponte-Rivera was indicted with co-defendants Rey Rivera Ruiz, Nomar Medina Diaz, and Michael Gabriel Rivera Hernandez.
According to the facts introduced at trial, the leader of the Washington, D.C.-area drug trafficking organization owed several thousand dollars to the Puerto Rico drug trafficking organization and had been ordered to pay for several kilograms of cocaine which did not arrive in the Washington, D.C.-area. On October 14, 2020, Aponte-Rivera lured the leader of the Washington, D.C. area drug trafficking organization and Shantay Butler to a desolate part of Toa Baja in Puerto Rico. When the leader of the Washington, D.C.-area drug trafficking organization arrived with Ms. Butler in a car, Aponte-Rivera ambushed them, but pulling out a firearm and firing on the vehicle. The leader of the Washington, D.C.-area drug trafficking organization was shot five times, remained in a coma for several weeks, but survived. His girlfriend, Ms. Butler, died of her wounds.
The FBI arrested Aponte-Rivera on April 15, 2021, in Allentown, Pennsylvania.
Rivera Ruiz pleaded guilty on May 26, 2022, to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and is set to be sentenced before Chief Judge Boasberg on February 22, 2024. In total, 10 individuals have been convicted for their roles in this drug trafficking conspiracy.
This case was investigated by the FBI’s Washington Field Office and the U.S. Postal Inspection Service, with assistance from the Montgomery Co. Police Department (MCPD), and the Frederick City Police Department (FCPD).
The case was prosecuted by Assistant U.S. Attorneys Anthony Scarpelli and David T. Henek, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office. Former Assistant U.S. Attorneys Rachel Fletcher and Dineen Baker assisted in the investigation and charging of this case.
Columbus man pleads guilty to sex trafficking women through force, fraud & coercionRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in federal court here today to sex trafficking and racketeering.
The parties involved in this case have recommended a sentence of more than 19 years up to 25 years in prison for Terrael A. Alls, 29.
According to court documents, in February 2022, the Central Ohio Human Trafficking Task Force received a tip from a Columbus Division of Police emergency operator. According to the tip, an individual had contacted authorities after receiving a business card from a man advertising a modeling agency. The caller received the card at the Red Roof Inn on Renner Road in Columbus. The business card was for a company called Elite Diamond Studios and the advertised phone number were ultimately linked to Alls’s as well as various online sex escort advertisements.
Alls, who is also known as “Rell” and “Ace,” recruited women under the guise of modeling for him as a photographer. He served as a pimp for his victims, advertising them for sexual escort services on various websites. Alls transported his victims to and from hotels while giving them drugs, such as fentanyl and methamphetamine, then later using their drug dependency against them to continue profiting from their commercial sex acts. Alls was frequently physically abusive to his victims as well. For example, he fired a gun near a victim’s head and threatened to pistol-whip her. He also punched the victims and slammed them onto tables.
Alls kept the proceeds of the victims’ sexual encounters.
A forensic examination of Alls’s digital devices revealed location data or WiFi logins at several hotels, including Scarlet Inn in Worthington, Motel 6 in Grove City and Red Roof Inn in Columbus. The defendant’s laptop had more than 42,000 sexually explicit images, videos and advertisements to include images and videos of the victims identified in this case.
Alls was arrested in March 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the guilty plea entered today before U.S. District Judge Michael H. Watson. Assistant United States Attorneys Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.
The case was investigated by the Central Ohio Human Trafficking Task Force, which was formed under Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission, and includes resources from the Columbus Division of Police, Homeland Security Investigations, Delaware County Sheriff’s Office, Powell Police Department, Bureau of Criminal Investigations, The Ohio State University Police Department, Marysville Division of Police, Salvation Army, Southeast Healthcare, the Franklin County Prosecutor’s Office and the Delaware County Prosecutor’s Office.
# # #
Coeburn Man Facing Mandatory 20-Year Sentence Following Jury ConvictionRead the Press Release
ABINGDON, Va. – A federal jury convicted a Coeburn, Virginia man today for conspiring with others to distribute more than 500 grams of methamphetamine in addition to possessing a firearm in furtherance of a drug trafficking crime.
Last week, a jury convicted Rodney Allen Pickett, 51, of one count of conspiracy to distribute 500 grams or more of methamphetamine, three counts of distribution of methamphetamine, one count of possession with the intent to distribute methamphetamine, one count of possession of a firearm and ammunition after having been convicted of a felony, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of firearm silencers.
At sentencing, Pickett faces a mandatory minimum sentence of 20 years in federal prison.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Special Agent in Charge Craig B. Kailimai of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Southwest Virginia Drug Task Force, the Coeburn Police Department, the Wise County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorneys Danielle Stone and Lena Busscher are prosecuting the case.
Cincinnati woman pleads guilty to laundering more than $8 million for online romance scammersRead the Press Release
CINCINNATI – A Cincinnati woman pleaded guilty in U.S. District Court here today to laundering more than $8 million for online romance scammers.
Pamela Moore, 65, pleaded guilty to one count of money laundering. She was charged by a bill of information last month.
According to court documents, between 2020 and 2023, Moore’s personal and business bank accounts with multiple banks received more than $8 million in criminally derived funds. Moore personally received $1.7 million of the funds, which she used or converted to Bitcoin at the direction of the scammers.
For example, Moore maintained multiple business bank accounts for PSM Custom Designs and Jewelries and used the purported jewelry business accounts solely for money laundering.
The parties involved in Moore’s case have recommended a sentence of up to three years in prison. As part of her plea, Moore will pay $1,680,900 in restitution. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service - Criminal Investigation (IRS-CI); and Yvonne Dicristoforo, Special Agent in Charge, United States Secret Service; announced the guilty plea entered today before Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorneys Ebunoluwa A. Taiwo and Ryan A. Keefe are representing the United States in this case.
# # #
Checotah Resident Sentenced for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randolph Boyd Strawn, age 68, of Checotah, Oklahoma, was sentenced to 180 months in prison for Murder in Indian Country – Second Degree.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Muscogee Nation Lighthorse Police, and the McIntosh County Sheriff’s Office.
On May 1, 2023, Randolph Boyd Strawn pleaded guilty to one count of Murder in Indian Country – Second Degree. According to court documents, Strawn maliciously killed the victim on December 6, 2022, pouring gasoline around the victim and igniting it.
The crime occurred in McIntosh County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Strawn will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith A. Singer represented the United States.
Charlotte Man Sentenced to 20 Years for Transportation of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Jose Emilio Alvarado Ochoa, 45, of Charlotte, was sentenced to 20 years in prison and 30 years of supervised release today for transportation of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Alvarado Ochoa was also ordered to register as a sex offender after he is released from prison.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and evidence presented at the sentencing hearing, from 2018 to 2021, Alvarado Ochoa repeatedly uploaded child pornography to his Dropbox account. Investigators determined that Alvarado Ochoa made some of the child pornography images and videos that he uploaded and that this child pornography depicted Alvarado Ochoa sexually abusing a minor. Alvarado Ochoa also possessed more than 600 child pornography images and videos. At today’s sentencing hearing, the Court granted the government’s request for the maximum 20 year sentence due to the nature and circumstances of Alvarado Ochoa’s offense.
Alvarado Ochoa is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the FBI and CMPD for their investigation of the case.
Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Charlotte Man Is Sentenced and Fined for Violating the Clean Air ActRead the Press Release
CHARLOTTE, N.C. – Rodolfo Rodriguez, 43, of Charlotte, was sentenced to ten months in prison followed by three years of supervised release today for violating the Clean Air Act, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Rodriguez was also ordered to pay a $302,320 fine and $24,404.60 in restitution to the State of North Carolina.
U.S. Attorney King is joined in making the announcement by Michael Sparks, Special Agent in Charge of the Environmental Protection Agency’s Office of the Inspector General (EPA-OIG), Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), and Colonel Michael Oates of the North Carolina Department of Transportation (NCDOT) License and Theft Bureau.
“Vehicle emission standards and testing are in place to protect the health and safety of our communities,” said U.S. Attorney King. “Environmental violations will not be tolerated and polluters will be held accountable for their actions.”
“Mr. Rodriguez was sentenced today for conspiring to violate the Clean Air Act for fraudulent vehicle emissions testing,” said Special Agent-in-Charge Carfagno of EPA’s criminal enforcement program. “The defendant’s criminal activity intentionally increased air pollution in communities where these vehicles operate, further exacerbating respiratory illnesses and environmental degradation. Today’s sentencing serves as a reminder that EPA and our partners are steadfast in our commitment to protect human health and the environment.”
According to court records and today’s court proceedings, from July 2019 to November 2022, Rodriguez fraudulently coded 3,779 vehicles that would have otherwise failed the required State emissions inspection. Rodriguez committed the violations while he was employed at Friendly Auto Repair, and later as the owner and operator of Auto Spa Auto Inspections and More and Tiger Auto Inspections and More, Inc. Court documents show that Rodriguez executed the scheme by falsely changing the information of vehicles that would have otherwise failed the required State emissions testing, so that they were no longer required by the State’s registration system to have a passing emissions test.
According to court documents, in some instances Rodriguez executed the scheme through “county swaps,” by swapping in the system the county of registration for vehicles from a county that required an emissions test to a county where no emissions testing was required. In other instances, Rodriguez did “duty swaps,” by changing the characterization of trucks in the system from light duty trucks, which require emissions inspections, to heavy duty trucks, which do not require such testing. Finally, Rodriguez did “fuel swaps,” by changing the type of fuel used from gas or diesel to electric, thus allowing such vehicles to evade the vehicle emissions testing requirement. In exchange for falsifying vehicle information, Rodriguez received cash payments from customers that far exceeded what customers would have paid to have an emissions inspection. In addition, Rodriguez paid the State of North Carolina only $0.85 per non-emissions/safety inspection, instead of the $6.25 per vehicle charge he should have paid for an inspection.
On June 15, 2023, Rodriguez pleaded guilty to one count of conspiracy to defraud the United States and violate the Clean Air Act, and one count of violating the Clean Air Act. Rodriguez will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the EPA-OIG, EPA-CID, and NC DOT License and Theft Bureau for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Business Owner Is Sentenced to Prison for $720,000 COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – Evan Agustin Perez, 35, of Charlotte, was sentenced today to 24 months in prison followed by two years of supervised release for obtaining approximately $720,000 in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan Program (EIDL) loans guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Perez was ordered to pay $720,079.82 in restitution to the SBA.
According to court documents and court proceedings, from April 2020 to September 2021, Perez conspired with Edward Whitaker and others in a scheme to defraud the SBA and SBA-backed lenders by obtaining fraudulent COVID-19 disaster relief funds for businesses he controlled or was affiliated with, including Augie’s Wish Foundation; EMP Haircare, LLC; E.M.P. Enterprises, LLC; T.O.P. Salon Suites Inc.; Touch of Precision School of Barbering, Inc.; Touch of Precision Barber Lounge, LLC; and Roads to Success Early Learning Center, LLC. Court documents show that, at the time, Whitaker operated a sham business in Texas known as “Loan Starters,” that assisted people with committing fraud through the creation of fraudulent PPP loan applications and fake supporting documents.
According to court records, Whitaker assisted Perez in preparing and submitting numerous fraudulent applications for coronavirus aid relief loans that contained fabricated information. For example, when he applied for PPP loans, Perez routinely fabricated the number of employees working for his businesses and inflated associated payroll costs, which allowed him to obtain larger PPP loans. Also, with Whitaker’s help, Perez supported the sham PPP applications by submitting fabricated tax documents that contained fraudulent information, including IRS Form 940, Form 941, and Form 1040 Schedule C, that falsely corroborated the inflated monthly payroll disbursements.
As a result of the scheme, Perez received approximately $720,000 in disaster relief funds. Instead of using the money to support his businesses, Perez used the funds for unauthorized purposes and to pay Whitaker for his services. According to court records, after Perez received the relief funds, he then submitted fraudulent loan forgiveness applications for certain PPP loans that also contained fabricated information.
On September 27, 2023, Perez pleaded guilty to conspiracy to commit wire fraud. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In January 2023, Whitaker pleaded guilty in federal court in the Eastern District of North Carolina to money laundering conspiracy for his role in assisting individuals with obtaining fraudulent coronavirus disaster relief funds.
The SBA’s Office of Inspector General investigated the case. Special Assistant U.S. Attorney Eric A. Frick and Assistant U.S. Attorney Daniel Ryan prosecuted the case.
* * *
To date, the U.S. Attorney’s Office for the Western District of North Carolina has prosecuted 28 individuals for defrauding government funding programs, such as the Unemployment Insurance benefit program, the PPP program, and the EIDL program, that were created or expanded during the pandemic to provide economic relief. These prosecutions have resulted in active prison sentences and the imposition of court-ordered restitution, fees, and fines.
“As the COVID-19 outbreak gripped our nation, the federal government provided emergency financial assistance to millions of Americans and businesses suffering the economic effects of COVID-19,” said U.S. Attorney King. “My Office will continue to partner with agencies across the federal government to combat pandemic-related fraud and bring to justice criminal actors who took advantage of a national emergency to line their own pockets.”
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
# # #
Cedar Rapids Man Sentenced to Federal Prison for Selling FentanylRead the Press Release
A man who was selling fentanyl was sentenced today to more than three years in federal prison.
Maurice Montez Tarver, age 30, from Cedar Rapids, Iowa, received the prison term after an August 30, 2023 guilty plea to one count of distribution and aiding and abetting the distribution of a controlled substance.
Evidence at the plea and sentencing hearings showed that, on four separate occasions between December 2022 and February 2023, law enforcement officers conducted an undercover operation and purchased pills containing fentanyl from Tarver.
Tarver was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Tarver was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Tarver is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Johnson County Drug Task Force and the Cedar Rapids Police Department. The Johnson County Drug Task Force consists of the Johnson County Sheriff’s Office, the Iowa City Police Department, the Coralville Police Department, the North Liberty Police Department, the University of Iowa Police Department, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-41.
Cary Businessman Pleads Guilty to Evading More than $1 Million in TaxesRead the Press Release
NEW BERN, N.C. – Arturo Barcenas Gonzalez (Barcenas) pleaded guilty to one count of tax evasion before United States Magistrate Judge Robert B. Jones, Jr. At sentencing, Barcenas faces a statutory maximum of 60 months’ imprisonment, a $250,000 fine, and three years of supervised release. Barcenas will also be required to pay restitution to the Internal Revenue Service in an amount to be determined.
“The vast majority of American taxpayers pay their fair share in taxes, supporting our nation’s infrastructure, innovation, and military. Meanwhile, Barcenas failed to file any federal tax return for years while he padded his personal accounts with money from his businesses,” said U.S. Attorney Michael Easley. “Businessmen making millions can’t use tax scams to dodge paying their share and leave law-abiding citizens to shoulder the burden. Hardworking Americans won’t stand for that, and neither will the IRS.”
“Defrauding the government using schemes to conceal income and evade taxes is unlawful,” said Donald “Trey” Eakins, Internal Revenue Service Criminal Investigation Special Agent in Charge of the Charlotte Field Office. “Today’s plea should serve as a reminder that those who evade their federal income tax responsibilities will be prosecuted and held accountable.”
According to court documents and other information presented in court, Barcenas owns and operates various businesses at an office location in Cary, including Barcenas Insurance Agency, LLC (BIA) and Barcenas Financial Services, LLC (BFS). BIA is a retail insurance company that offers and sells traditional insurance policies, including automotive coverage. The investigation revealed that BIA operated a high-volume, cash-intensive business that, among other things, registered and titled vehicles on behalf of undocumented aliens through the use of assumed business name certificates filed with the register of deeds. BFS is a tax return preparation business that prepares federal and state income tax returns for customers.
In July 2018, Barcenas filed a false 2017 federal income tax return (Form 1040) that concealed over $300,000 in business receipts. Thereafter, Barcenas simply stopped filing federal tax returns altogether. Despite his non-filing, Barcenas continued to generate substantial business income—investigators identified business receipts in excess of $1 million per year between 2018 and 2022. In order to avoid IRS assessment and/or collection activity, Barcenas engaged in various acts of evasion, including titling assets in the names of others, depositing business proceeds into personal accounts, and making extensive use of cash.
In May 2023, the IRS conducted a search warrant at Barcenas’s offices in Cary, during which agents recovered, among other things, various income-establishing business records that Barcenas previously claimed that he did not possess. The estimated tax losses attributable to the offense are over $1 million for calendars years 2018 through 2022.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after the arraignment. IRS-Criminal Investigation, based in Raleigh, investigated the case and Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-376-FL.
Carlsbad Man Sentenced to over 17 Years in Prison for Enticement of a MinorRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI’s Albuquerque Field Office, announced that Juan Antonio Flores was sentenced to 17.5 years in prison. Flores, 47, of Carlsbad, pleaded guilty to enticement of a minor on Sept. 19, 2023.
According to publicly available court records, the FBI obtained a federal search warrant for an address in Carlsbad associated with an online account for a fetish website that had been discussing the sexual molestation of a 9-year-old minor and sending child pornography of that minor. After execution of the search warrant, the FBI was able to verify that the adults living at the address, Joseph and Rachel Crutcher, had been sexually abusing three children in their care and had been setting up meetings with other individuals to sexually abuse at least one of the children who is identified in court documents as Jane Doe.
Through their investigation, the FBI learned that Joseph Crutcher met a man named “Juan,” who was identified by the FBI as Juan Antonio Flores, online and arranged to meet Flores in person. During their online conversations, Flores repeatedly discussed his desires to sexually abuse Jane Doe, and Flores made plans with Joseph to do so. The FBI learned that the Crutchers took Jane Doe to meet with Juan in person on three occasions. During those meetings, Rachel engaged in sexual acts with Juan while Jane Doe and another minor child were present, and on another occasion, Joseph engaged in sexual acts with Jane Doe next to Flores while Flores engaged in sexual acts with Rachel.
In his plea agreement, Flores admitted that on several occasions in Sept. 2022, during online conversations with the Crutchers, Flores discussed his desire to engage in sexual acts with Jane Doe and arranged to meet with the Crutchers and Jane Doe on multiple occasions.
Upon his release from prison, Flores will be subject to a lifetime supervised release and must register as a sex offender.
Rachel Crutcher pled guilty to production of child pornography and was sentenced to 30 years in prison. Upon her release from prison, Rachel will be subject to lifetime supervised release and must register as a sex offender. Joseph Crutcher pled guilty to one count each of production of child pornography, distribution of child pornography, and possession of child pornography and was sentenced to 70 years in prison. Upon his release from prison, Crutcher will be subject to lifetime supervised release and must register as a sex offender.
A third individual who arranged to meet with the Crutchers with the intention of engaging in sexual acts with Jane Doe, Dominic Allan Marks, pled guilty to enticement of a minor and was sentenced to 30 years in prison. Upon his release from prison, Marks will be subject to a lifetime term of supervised release and must register as a sex offender.
The Roswell Resident Agency and the FBI Albuquerque Field Office jointly investigated this case with assistance from the Eddy County Sheriff's Office and Carlsbad Police Department. Assistant U.S. Attorney Matilda McCarthy Villalobos is prosecuting the case.
# # #
24-78
Cape Girardeau Man Sentenced to Serve 10 Years in Federal Prison for Selling FentanylRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Wednesday sentenced Bernardo D. Pulido, 33, of Cape Girardeau, Missouri, to serve 120 months (10 years) in federal prison for the offense of distribution of fentanyl.
At his guilty plea hearing last year, Pulido admitted that he sold pills containing fentanyl to an individual in Cape Girardeau on two separate occasions in May 2023. Unbeknownst to Pulido at the time, the individual purchasing the pills was working as an informant for the Drug Enforcement Administration (DEA). According to court documents, Pulido has multiple felony drug convictions from state courts. At the time he sold fentanyl to the DEA informant, Pulido was under parole supervision through the State of Missouri for a methamphetamine-trafficking offense. After serving the 10-year sentence, Pulido will be placed on supervised release for six years.
This case was investigated by the DEA. Assistant U.S. Attorney Jack Koester handled the prosecution for the government.